Home Buyers Tax Credit Expiring: Now What?

April 29, 2010

Friday is the last day to take advantage of the Federal Home Buyers Tax Credit. Do you have a contract in place?

If not, don’t fear. While Congress hasn’t announced any plans to extend the program, others are stepping up with incentives to help the struggling real estate market, and my guess is there will be more to follow.

Fannie Mae has a program that offers buyers who close on a Fannie Mae-owned home an incentive of up to 3.5 percent of the final sales price. That incentive can be used toward closing costs, specific appliances, or a mix of both.

The program targets REOs, or real-estate owned properties, which are homes in the final stage of foreclosure. The incentive was set to expire on April 30 but has been extended to June 30. You can find eligible properties, including single-family homes, condos and town houses, at www.HomePath.com.

“We are happy with the results of the program, which has helped us to sell properties quickly, thereby stabilizing neighborhoods and property values,” said Terry Edwards, Executive Vice President of Credit Portfolio Management.

Fannie Mae HomePath properties may also be eligible for specialHomePath Mortgage and HomePath Renovation Mortgage financing, which allows buyers to purchase a property with as little as 3 percent down.

Now on to the private sector. Coldwell Banker announced this week that on May 1 it will launch theColdwell Banker Buyer Bonus Sales Event, which will offer a credit of 3 percent of the purchase price, up to $8,000, to home buyers who sign a contract by July 31. There is no deadline for a closing date.

“The federal government did its part to encourage millions of Americans to achieve their dream of home ownership with the help of the home buyer tax credit,” said Jim Gillespie, president and CEO for Coldwell Banker Real Estate LLC. “We are confident that this private sector solution will represent a significant step toward continued recovery of the housing market.”

Check out www.coldwellbanker.com and check the box labeled “Buyer Bonus Sales Event” to find eligible properties.

On the national level, the state of California is starting its own program on May 1 that offers a $10,000 state tax credit to buyers who purchase their first home or new construction.

Nothing like that announced for Illinois, so if you really wanted to get that federal tax credit on Chicago real estate, I suggest you check out 565 W. Quincy, a new condominium development in the West Loop that’s holding a Midnight Tax Dash bonanza with free Red Bull Energy drinks and hours until midnight April 29 and 30.

The housing market still needs help, so hopefully more programs will surface in the coming months. Stay tuned to chicagorealestateforum.com for all the delicious details.

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This is so interesting!


[…] course, home sales were driven by the Federal Home Buyers Tax Credit, which expired at the end of April. May’s numbers will really be the test as to whether the […]

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